Sen. Bernie Sanders has proposed legislation that would prevent the federal government from withholding Social Security benefits from older Americans and people with disabilities to repay defaulted federal student loans.
Sanders announced the Stop Social Security Garnishment Act on Monday. The bill is backed by Democratic Sens. Elizabeth Warren and Ed Markey and is expected to be formally introduced when the Senate returns next month.
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Millions Of Borrowers Are In Default
Nearly 9.5 million federal student loan borrowers were in default as of March, according to an Associated Press analysis of federal data. Sanders said nearly one in four borrowers cannot repay their loans and could face wage or Social Security garnishment.
Around 9.6 million borrowers aged 50 and older hold nearly $457 billion in outstanding student debt, according to Education Department data.
Collections Remain Paused
The proposal comes as the Trump administration has paused involuntary collections from borrowers in default.
In June 2025, the administration said it would not reduce Social Security benefits for affected borrowers, reversing an earlier plan to resume collections after pandemic-era protections ended. In January, the Education Department also announced a delay in wage garnishment and other involuntary collections while new repayment options were being implemented.
Borrowers in default have meanwhile been given more time to rehabilitate their loans and return to repayment.
What Sanders’ Bill Would Change
If passed, the legislation would prohibit the government from garnishing Social Security retirement and disability benefits to repay federal student loans. The measure would also protect older borrowers from forced collections that could affect their ability to pay for healthcare, medicine and other basic needs.
“In the richest country in the history of the world, no senior should have their Social Security payments taken away from them to pay back student debt,” Sanders said.
The proposal would not erase student debt, but would prevent Social Security benefits from being used to collect it.
